Thomas H. Lee has kicked off a sale process for Alfresco Software, a provider of process automation technology, six sources familiar with the matter told PE Hub.
The firm has hired Jefferies to advise the company on its sale, the sources said.
Alfresco is taking meetings with interested parties, primarily private equity firms, one source said.
Alfresco, based in San Mateo, California, and Maidenhead, UK, is an enterprise open-source software company focused on improving efficiencies across business processes. The company provides enterprise content management tools that enable clients to retain, manage and share documents, files, and processes across the cloud, mobile, hybrid and on-premise environments.
The company produces around $140 million in revenue and $35 million in EBITDA, the sources said. A sale could command north of 20x EBITDA, they said, which would suggest a deal valued upward $700 million.
Alfresco is set to be a relatively short hold for THL. The firm originally agreed to invest in the company in February 2018.
The company has since grown through several add-on acquisitions. In 2019, Alfresco acquired pernexas, a German provider of connectors with SAP products. Most recently, in March, Alfresco acquired content services specialist Technology Services Group.
On the buy side, THL recently acquired SeniorLink, a tech-enabled company that empowers caregivers coordinating care for seniors at home, PE Hub reported in July.
The firm was also seen bidding for Open Systems International, an automation software provider, but has since dropped out of the process.
THL and Jefferies declined to comment for the story. Alfresco did not return PE Hub’s requests for comment.
Action Item: Read PE Hub’s story on T.H. Lee acquiring SeniorLink.